By Gao Yuan and Philip J. Heijmans
India and Singapore have agreed to step up collaboration in semiconductors and digital technologies, seeking a bigger role in a global chip supply chain being reshaped by tensions between the United States and China.
During a two-day visit by Indian Prime Minister Narendra Modi to the city-state, the countries signed agreements to cultivate talent in chip design and manufacturing and facilitate Singapore’s technology investment in India, according to an Indian government statement released Thursday. The nations will also work more closely on cybersecurity, fifth-generation mobile networks, supercomputing and artificial intelligence.
Singapore, India and Malaysia are among Asian economies that have benefited from the prolonged chip war between the United States and China that has shaken up the global chip market, which is on track to reach sales of $588 billion this year. Both China and Western countries are rushing to establish independent supply chains to avoid geopolitical risks, creating business opportunities for the industry.
While India’s semiconductor industry is in its infancy, Singapore has played a major role in the sector for decades. The city-state is home to some of Southeast Asia’s largest chip manufacturing plants, and plays host to international companies such as NXP Semiconductors NV and Micron Technology Inc. The island nation boasts a legion of chip research and engineering talent, as well as abundant venture capital for chip startups.
The deal also showcases Modi’s ambition to turn the world’s most populous country into a technological superpower, in which a strong semiconductor ecosystem is crucial. During his trip to Singapore, he met Prime Minister Lawrence Wong and is expected to meet other key officials from the city-state. The two nations also signed agreements in the areas of health, medicine and skill development.
Singapore’s foreign minister, Vivian Balakrishnan, told reporters last month that closer ties with India in semiconductors would help Singapore companies tap into South Asia’s fast-growing market. “They know that although Singapore is very small, we have a disproportionate share of global semiconductor manufacturing capacity, and they are looking carefully at our system in terms of their ecosystem,” she said.
The Modi government has launched a $21 billion plan to bolster semiconductor manufacturing capabilities across the country, with a total investment of $15 billion in chip manufacturing plants announced earlier this year. Singapore’s expertise in mature memory chips and logic processors, which are widely used in electronic devices and automobiles, could help India grow its chip industry at a faster pace.
First published: September 5, 2024 | 10:05 am IS
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